woman: what do you mean, homeowners insurance doesn't cover floods? [ heart rate increases ] man: a few inches of water caused all this? [ heart rate increases ] woman #2: but i don't even live near the water. what you don't know about flood insurance may shock you -- including the fact that a preferred risk policy starts as low as $129 a year. for an agent, call the number that appears on your screen. >> more and more companies are dropping health department coverage for spouses as a way to save money under obama care, but should they be forced to cover husbands and wives alike? this is what you dweeted me, the spouse is not covered otherwise and family too, but steve disagrees saying companies showrm be forced to cover anybody. we asked the questions on our website, 27% said yes and 73%

said no. tonight, i agree with mayor bloomberg, can you believe i'm saying this? the man who banned soda, salt, and anything fun in new york city is in the right this time. bloomberg view stowed what could have been the most aggressive measure to have employers ignore unemployed job seekers. it bans ads say unemployed need not apply, but this one let'ses rejected applicants sue employers. all this does is produce more lawsuits, not more jobs. you can't make blanket laws like this. that's my who twenties more. that's all for tonight's willis report. thank you for joining us. have a great night. see you back here monday. ♪ lou: good evening, everybody the dacan be described as quiet

from washington to the middle east, where as two days for market selloffs brought i told you sos from some wall street gurus. today's triple digit rally in the dow was unobserved by those who lost the narrative. as surrogates and private campaign force, organizing for action, worked to upend the second amendment, the president, himself, seems most willing to put a electoral risk, and the democratic senators and they had the elections, and facing constituents on gun control, trying to explain the president's early enthusiasms and why he's silent about it now. the president privately meeting with white housereporters today who took with it, pins, cameras,

or anything with which to record the president. it appears ed henry, not only the talker at the white house, but the president of the white house association made an impact or perhaps he and want others are simply summits of the president's considerable charm and high success rate at co-oping nearest and occasional critics. to the business at hand, all of the outward silence in the nation's capitol suggesting the possibily of a lot of behind the scenes goings on on subjects like the avoid dance of the sequester or north korea's threats to launch an intermediate ballistic missile with discussions with iran adding to compound the complexity of resolving nuclear ambitions in the volatile middle east. danger abounds. the prsident, somehow, still optimistic a bigger budget deal

can be reached before the sequester goes into effect a week from today, not even with congress on recess, no face-to-face negotiations, fox news, chief white house correspondent ed henry, has the report. >> hope springs eternal. i will just keep on making my case not only to congress, but more importantly, the american people. >> after talks with jeep these prime minister, president obama took a rare question from the press in the oval office. it said he's still optimistic there's a bigger budget deal with spending cuts. >> i've been very clear that there's an alternative which is for us to tate the balanced approach presented where we have more strategic cuts on programs we don't need, and we close some tax loopholes that are taking advantage of only by the well-connected and well-off. >> a far more pessimistic tone

from boehner's office charging the president has been awol. the spokesman declared sound bites and speeches don't yield results while the conservative group launched a new ad today mocking the apock lippic tone from the president. >> do you want to see a lot of first responders lose their job, teachers laid off, air traffic controllers, and airport security is a hardship on people, seniors, middle class families scramble to ind child care if for the kids. >> he signed it into law. >> every three months around here, there's a crisis. >> they continue the drum beat of gloom and doom with the secretary warning air wait times will be more of a mess. >> flights to cities like new york, chicago, and san fransisco and others could experience delays of up to 90 minutes during peak hours because we

have fewer controllers on staff. >> republican rand paul today introduced his own alternative plan without layoffs charging the white house is exage rating the impact. >> i'd say balderdash, it's untrue, unfair, dishonest, disinjen ewe wise. the president makes stuff up. he puts law enforcement, firemen and policemen who 98% of them are being paid for with your local taxes and says you're going to lose your local policemen because of this? it's not true. >> meanwhile, republican duncan hunter is teeing off on delaying the deployment of the harry s. truman to the persian gulf charging it'sabout dramatizing potential budget cuts than making the proper military decision, though a pentagon spokesman told fox this was totally done by the book that this was about saving money and not about political drama. lou? >> thank you very much, ed

henry, chief white house fox news cor responsibility. the first guest attests firsthand to the lack of urgency and accountability in washington. concerning the sequester, former senator scottbrown, a fox news cricketer, great to have you with us. >> great to be on, lou. lou: turn to the hoer row show the president is trodding out. seemingly evy person in the administration given the opportunity to go out in front of cameras to scare the american people. what do you think of it? >> well, it's a broken record strategy. it's something i heard the last three years. they put something forth, give it a great title, but when you read the bill, it's not what it's moment to be. we saw sequestering if you remeer because we tried to avoid default and make sure the credit rating agencies didn't lower the credit rating, came up with what they considered draconian cuts, harry reid and mitch mcconnell said there's a select committee that will spread the cuts all over, you know, over evenly, and that

didn't happen, bottom line is, listen, this has been up for a year, and i, and others said, let's get to it, get to it, and they did everything but this. they are on vacation now. they should have come back last week if it's that important. it doesn't get down. i hope i'm wrong, but people are depending on a type of certainty and stability. lou: interesting difference of view in the republican party. speaker boehner in his op-ed this week acknowledges that there would be significant disruptions as a result of sequester going into effect, yet, most of the republican parties say this is what we need, see spending cuts, ned to take if on even if it's across the board and arbitrary. there is a real division right now working the republican party apparently; is that right? >> i have not heard so much let's just make the cuts and about it. i'm in the pentagon. i'll serve next week again, and

i'm working in the national guard bureau, and that's all they talk about. they are concerned, concerned about those laid off, but the men and women of the serving and the people in all up and down that supply chain having that level of regulatory in, and tax in payment security, bottom line, do we need the cuts? of course. the president's in charge and harry reid in charge of the senate. you'd thought we're in charge of everything, apparently. we're not. the president needs to show adership. the house already sent forth proposals, sitting on harry reid's desk, he's done absolutely nothing to bring this to a head. he'll put a bill up with a great title, went be what we want and force you to do it, and, by the way, blame the republicans when it doesn't happen, and then they get to it after, obviously, the march 1 #st deadline. lou: military pay will not be affected by sequester. there's the prospect of possible

rolling furloughs, one day a week, several effects that civilian employees, a great number of them in the rollg fiduciary row situation, if it does, in fact, occur. the idea of a sequester turns out to have been -- it seems to me, a monumental misjudgment on the part of both parties and the president, and i can't believe we are sitting here march 1st, and neither the republica or the leadership says this is a stupid idea, and the only people with the power to correct a massively ignorant device we created, and the repugnant results are us, and we're going to take that opportunity and be leaders and responsible right now. why isn't such a thing occurring to the president of the united states who is, as you point out as you return to service for the country next week, he's the

commander in chief for crying out loud. >> he needs to show leadership, and you're rig. bottom line is the people who were elected, there in washington, elected to take the tough decisions. they were elected to make sure that these types of things don't happen, and they put partisan politics and personal interest and the ability to finger point ahead of our country's interest. they are not agenting as americans first making sure we can step back from the issue because we already cut a half a trillion from the military budget, and we're not saying we can't cut more, just a question of let the military do it. give them the ability to have the authority to make cuts. tell the committee chairman and ranking members, harry reid, to do your jobs, do a top to bottom review of the committee responsibilities and find 1.2 trillion dollars worth of things to cut. lou: now that you're not aligned with the, if you will, the first, the -- >> well, i was 50/50.

i was 50/50. i could have gone either way. lou: don't have to worry about alignment. what is your view about continuing these discussions amongst elites, that is a super committee that creates the travesty called sequester, that supercommittee, the gang of 8 on immigration without public discussion in town halls. i want to credit senator john mccain, a veteran of the immigration wars on capitol hill. he's held meetings and is beginning to hear from his constituents. it's as if all of washington decided now that they are the french aristocrats of the 18th century. this is becoming unseemble, don't you think? >> well, i'm all for full disclosure and transparency in things we do, especially dealing with people's pocketbooks and wallets to ensure we are good stewards of the money. right now, people in washington, as you of all people know, they are not. they are just spending like

there's no tomorrow like pigs in a trough. i used that before, and we need to stop, and to make sure that -- listen, i love john mccain, a real mentor to me in washington and someone i consider a national hero, and the fact he's out there doing the town hall meetings, taking the lumps and praise to at least bringing the conversation to the people and letting them be part of the process, i think, can be comanted. we have to do that with everything. we were under the gun. i voted for it because we were told by leaders the committee does their jobs. when they put up the head of the democratic senate committee in there, she's not going to make the tough decisions so we can do better. they should be working out over the last year, and they are doineverything but the economic issues. lou: senator, reat to have you heredelighted to welcome you, a fox news contributor, and delighted, also, well, that you're going to be with us for quite some time. you're not thinking about any political steps in the intrerm, are you?

>> listen, lou, happy to be on the show, and contribute as long as you have me on. lou: fox news contributor, a terrific, a terrific beginning, i think, a great inaugural. more on the countdown to quester, hang hon. escalating the drone air wars. almost 400 drones flying over the united states. higher gasoline prices, higher taxes, weakening the economy and taxes, weakening the economy and harris on what the future holds. before copd...

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lou: delighted the chief commiist, ubs, will be joining us here to give us his outlook on the economy and view on the stock market, but wall street ended with a rally. s&p gained 13. the nasdaq picked up 30 points. volume on the big board today down to 3.4 billion shares. the courts handed green light capital a victory in the fight with apple to return $137 billion to shareholders. apple shares up a share today, just winning a battle in that war. hp up 12%, hopes the company is on the road to recovery after beating quarterly expectations. you remember when hp was written off. what was that? oh, about three months ago, wasn't it? for the week, the dow, the winner, the s&p down, snapping a seven week win streak. the nasdaq lost about 1%. gold closing at 15 72.80 an

ounce, down $37 this week. crude oil with a gain at 93.13 a barrel. in the bond market, ten-year treasury yields. there's less of a threat to the economy than, well, some politicians suggest. joining us now with the economic outlook, chief u.s. economist for ubs investment research. great to have you here. talking bout terrible thing, apocalypse, armageddon is the president of these united states. he's mistaken? >> all you have to do is add the numbers. they say this sequester is $85 billion. that is based on budget authority. what they actually spend less behind budget authority so when commiists figured this, they take half of the 85 billion divided by the gdp and three

tenths or four tenths of 1%. it's not that big right now. lou: one of the thing, and i don't want to engage you on the conversation with the president's veer rasety, but the fact of the matter, as we noted on the broadcast, the president talking about first responders, policemen, firemen, emts losing their jobs because of sequester. we don't know what he was thinking when he said that, but i want to know what's going to happen with the economy, and i think everyone watching this wants to know where we are. in contraction in the fourth quarter with the gdp, and numbers suggest life and bigger to this economy, which is it? >> i think it's the latter. there is life and vigor in the economy, and, you know, there's focus now on this sequester business. like i said, the $85 billion they talk about, but give them

the 85 billion. let's say that happens. that's for a whole year. you have the fed pumping in $85 billion a month and money into the economy. that's a lot more important, banks lending, people borrowing, moving forward. lou: that's great. the president doesn't mention the 85 billion a year pumped into the economy by the fed. i don't know why he does that. it might relay the obvious anxiety. interesting to watch what's happening in the market place because when the fed minutes came out, everybody id, oh, my god, they're talking about tightening monetary policy, ending the bond buying program, none of which i could finin the minutes, by the way, couldn't even find a suggestion of it, yet, the market sold off for two days on that inferns from those minutes, and we -- finally, you know, one of the fed presidents coming out today to say, hey wait a minutings we didn't, you know, that'ssnot what we are talking about.

it's going to stay lose, stay really easy money times. what's your reaction to what turned out to be a dramatic moment in the market that didn't last? >> well, you know, this shows you how nervous people are about monetary policy because so many investors believe it's been so important from the stock market, and just with the least hint they are even contemplating having this on the table again to cutit back is enough to make people nervous. now, the reality was there was this agreement at the last meeting, but a lot of the people who objected to what they do now do not vote this year. among the people who vote on monetary policy, most of them are doves. lou: doves, and it's still pretty -- well, it's pretty much a leader's quorum in the federal open market committee. give us your instinct on these

markets, how we've seen vulnerability here as you noted here over the last couple of days, resurgence today. what do you lok for today and the months ahead of us? >> i think stocks out perform bonds, one of te most important lessons forinvestors. hard to see -- lou: listen to bill gross? >> charging how rates charge this low, it's only going to graduate pull out of the qe, but as the labor market improves this year, investors are going to start thinking, well, down the road, mr. ben bernanke is not pumping in $85 billion a month. that's a month, lou, and once they start thinking about that, these rates are going to go up. lou: there will be a levinning process as a result? >> i think the rates are not going to go up until there's more confidence in the economy so the rates don't necessarily

have to hurt the stock marketat this point. lou: in fact, as you are suggesting, when that happens, that's a powerful sinal how strong the economy is. great it have you with us. thanks. come back soon. time for tonight's question, will the president and congress reach a deal to avoid the nasty se -- sequestering are -- or are they intent ongoing forward with this? go to facebook.com/loudobbs adopt. cast your vote, sequestering, yes or no? a new report from the faa has the number of domestic drones now over the skies of america, expanding from now hundreds to thousands over the course of the next decade. a $200,000 taxpayer funded

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♪ lou: president obama announcing he spent -- send 40 new tros to the west african country of niger. defense officials are setting up a drone bass. the total number of troops there to 100. president obama's says those troops will also help of france with its ongoing operation against islamist militants in neighboring mali. the obama administration has been rapidly expanding its use of drugs overseas, angry many in the far left of this party. the drone program is also growing here at home. they are being used to patrol borders, dust crops, even watch for forest fires.

with that fast evolving technology comes that heated debate over privacy versus safety and utility. fox's chief intelligence correspondent has our report. >> when most americans think of drone's they think of the obama administration target killing of operatives overseas. during recent confirmation hearings the president's pick to lead the agency was pressed for answers. >> do you believe that the president should provide an individual american with the opportunity to surrender before killing them? >> i have not spoken about any specific operations. >> and talking about the concept. you talked about the concept. >> in a series of supplemental questions he said this administration has not carried out ground strikes inside the united states and has no intention of doing so. there is every intention to expand the use of so-called many

drones used mostly by local police and first responders. granted 327 licenses and projects as many as 10,000 licensed systems by 2017. >> is really just an extra tool in the toolkit for these first responders to use. it is more affordable than a lot of the man assets that are out there. >> advocates say most license through the faa will look like this. >> we're talking about something that is very small that could fit in the truck of a police car >> they cannot be armed in cost between ten and 50,000 that flight times of an hour less. >> it would use themor a specific missions such as finding a lost person or for monitoring traffic or potentially for crowd control. >> they become a tool for generalized mass surveillance by the government. >> critics like the aclu warn about potential tsunami of drones, a kind of digital while the west with a lot is easily outpaced by technology. >> there is some case law about aeri surveillance, but it is not necessarily encouraging when

it comes to protecting privacy. the supreme court ruled that the police c look down into your backyard, even if you have i fence with no warrant. you have no protection there. >> with requiring the integration of you avian to the already crowded public aerospace the debate has not begin to address the conundrum of private users. >> what are we seeing also from the hobbyist world? are they running ahead of us? of the heading toward a dangerous conflict? >> it is a different world in terms of modeling it. how they're going to come together is to be determined. >> given the significant privacy issue the permit of common security is only now set up a group to study the impact of government uap on civil liberties, civil rights, legal, and other policy issues. lou: thank you very much. troubling expansion of drone use. thank you. fox news chief intelligence correspondents. much more on the expansion of

the domestic front program. we will take that up with the "a-team" coming up next. president obama's says he does not want your guns. every other democrat certainly seems to. that story is next. detroit is the worst and in bad company. we take it up with the "a-team." and the continuing case of the sensitivity trader at the department of agriculture. it gets even more sensitive. the story is coming right up.

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♪ lou: to republican lawmakers accusing the justice department of stonewalling an investigation into allegations that in asset transferred secret weapon system technology to foreign countries, including china. congressman frank wolf of virginia, congressman lamar smith of texas says it has been four years since the fbi began

its investigation into an unnamed individuals at the nasa ames research center and that prosecutors have been ready to charge those employees but have been blocked by the justice department. among the sensitive technologies reportedly linked to china and other countries, guidance systems from the tomahawk cruise missile and radar from f35 fighter jets. well, new video being released from i2011 taxpayer funded cultural sensitivity training program at department of agriculture, this time showing a diversity awareness trainer to asking employees to chant about discrimination and suggesting the united states took over what used to beat mexico. >> i want you to say, if we work for federal agency, said that. >> if we work for a federal agency. >> we have discriminated in the past. >> we have discriminated in the past. >> mexics into this country

illegally. never mind that the united states expanded and took over what used to be mexico. if the truth be known and a lot of these circumstances, to go back where you came from. tech system california, arizona. lou: joining me now to give us so little bit of psychoanalysis on the sensitivity trainer and the sensitivity training, a clinical psychologist dr. kathryn sperm. great to have you here. i have watched this of the course of the last week. what is your reaction? >> mystifying. it is absolutely mystifying. sensitivity training is supposed to be a feedback loop, as opposed to actively involve people. learning how to put yourself in someone else's shoes. what he is doing is dictating, and what he's doing is lecturing. it is so alien to what really sensitivity training is and how it affects experience because

sensitivity training is more than words. it is also experience. lou: experience and sensitivity training, by definition, is to open one's mind rather than close it. that is the stuff of indoctrination. i have never, and i have had some familiarity with sensitivity training for. i actually did sensitivity training early on as a man for the department of labor. i mean, this is extraordinary to witness. watch this, if you will. give us your reaction to this kind of training and try to tell us why in the world the department of agriculture would engage in something like this. >> i want you to see america responded by outsiders. said that. >> correct.@ it is insiders. they get very nervous about today's outsiders. i want you to say, the pilgrims were illegal aliens.

>> say the pilgrims never give a passport to the indians. lou: what do you think? >> the only possible plausible explanation that i can think of is that he wanted to make people uncomfortable and therefore for them to think about what he was saying. but this is such a bizarre way of trying to reach people. such -- it's such a disconnect to whatensitivity training is. it is just mystifying. honestly. really is. lou: the chanting nonsense and the fact that taxpayer dollars are being spent on this outfit is incredible. among some of the language here, if you tell some of those mexicans, go back where you came from, as i anybody is, create straw man and then makes what he thinks is a right is joke, apparently. it is really the chanting, the

indoctrination. i was wondering why he did not just explain what the treaty of guadale, 1848 was all about. maybe that would have helped him and his sensitivity training. maybe you could have taken into account the fact that this is the only nation on the planet in which there was ever permitted consideration of making a 11 million people who entered illegally citizens of the united states. >> absolutely. listen. our country has been built on inclusion, not exclusion. lou: that is a great point. part of the sensitivity training, i think might be that we need to kind of lift up to conscious about our values. maybe point out that 300,000 americans died to free the slaves. no other country on earth has ever gone to war with itself to free slaves. it is an extraordinary and noble moment in history. that is not mentioned very often

>> i will tell you something that really strikes me. this man seems to be so egomaniacal, it seems to be such about him rather than about what the focus of sensitivity training should be. it is almost like he is enjoying being an actor of there. lou: the power trip. >> the power, the your trip, whatever it might be. lou: and so, i am amazed. lou: it is great that our audience gets to see that. what is going. what it all means. thank you for being with us. >> thank you. lou: go to of the website to finally start facebook page. e-mail me. and you can tweet me. and don't forget. voting in our poll. the question tonight, will the president congress reach a deal to avoid it -- does that say -- my apologies.

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♪ lou: president obama, tea party backed republican senator in the city logical opposite, but they have very same reviews about where the republican party right now could improve a great deal. listen to the president by al sharpton is ready a share yesterday. >> my sense is that -- the basic view is that nothing is important enough to raise taxes on wealthy individuals or corporations and that is the

thing that binds their party together at this point. lou: here is what he said at an event in ohio. hosted by the republican party. it is important to know that. the democratic story is the republicans are the party of the rich and the democrats the party and everybody else. and heaid, if that is the narrative people believe it will never allow another national election. the president, workingo change all of that. there is a messaging were going on between the national rifle association and organizing for action, the advocacy group for the top advisers to the president. no connection whatsoever to the white house. take a look at the nra powerful new ad. >> you all remember barack obama's 2008 promise. it is not surprising. they cling to guns our religion. the arrogance of their superiority requires this. they don't rule less.

they don't give us rights. we grant them power. lou: meanwhile, organizing for action targeting 13 republican lawmakers, urging them to back universal background checks. those ads running on the web sites of local news outlets, individually tailored for the photos and twitter handle of the congressman to be this one targeting congressman buck mckeon, the head of the house armed services committee. forbes magazine releasing its list of the most miserable cities in this country. illus takes into account various factors, including the unemployment rates, violent crime foreclosures, income, property taxes, even weather and commuting time. modesto california, chicago. rockford, illinois, plan, michigan. the first the nearly bankrupt detroit. we may have rent chicago ourselves a bit higher given all the problems they have. up next in the present dispatching his lone republican

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♪ lou: joining us now, the "a-team". we have -- in b.c. has fallen to the fifth position in ratings in the february sweeps. behind univision, for crying out loud. i thought -- i have a theory here. they have become so politicized, lifted the veil on their left-wing stuff.

i think they may be paying the price for it. >> maybe it will follow and just take it in spanish. it's all his fault. he starts the day of being a liberal progressive jerk. then the rest of the day, even to the point when ellet baldwin was leading the liberals and progressives. but i think they just need jerry seinfeld, a program about nothing. that is what we couch potatoes want to do, that done nothing. lou: what do you think? >> it is a little more simple there are suffering as a result. >> what happened to true journalism? if you read an article by someone and you could tell what party affiliation they came from , that is true journalism. i believe that people -- >> you could not be more right. lou: you're right. it is long gone. look at what is happening. the new york times, they are selling the boston globe. politics is in binging on the

performance as corporations and businesses. the shareholders ought to be saying, you know what, you have to get back to the center into it pretty quick. >> not just the shareholders, nbc is free over the air which means that the airwaves belong to the american people and it is about time they make a stand. they can get there broadcast licensing rivet revoked. lou: i want to return to senator crews to has become quite a fascinating fellow. he really is. this man is speaking out on a host of issues. frankly, i have to believe he is starting to make some democrats a little uncomfortable. >> the problem with the republican party is and has no narrative. they have stories and narratives. he is not afraid to speak truth to power. while i disagree with them on most things, we know is that what you're saying is absolutely right. >> the party does have a narrative. does have a stance. the bottom line is this -- fiscal responsibility,

individual rights. a vigil responsibility. that is not george w. bush. we have values that we need to go back to paris redounded detains the party, but we do have a narrative. it is not about rubio making a stand. you will see as revamp things. >> it goes back to sam's club republicans versus country club republicans. what we had. 47 percent. in know when i knew how they missed the boat? my first paycheck after january 1st. what the hell happed to my money? they are taking all of this. it is the republicans that campaigned on that mitt romney would be president of the united states today. lou: and with that we are going to come right back for more and find out exactly what in the world the republicans should be doing right now. doing right now. ay with [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is,

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lou: we're back with the a-team, and everybody is talking in the

republican party about this guy, president obama, and they complain about him day in and day out. understandable. they don't respond strategically to him. why not? >> we have weak leadership, lou. i have to say that. i like boehner, i do, but we have weak leadership in the party. we need to get back to advocacy. when obama states something, don't let him win the target. you stand on your platformment we're not doing that. lou: what is the deficiency here? i mean, the guy's, you know, the people around here -- some are bright guys. >> i think you make the opposite argument in the last election, lou. they have no narrative, no argument for economic growth, job creation, stimulating the economy, and offering growth, hope, and opportunity. lou: they don't have a response to class warfare rhetoric. >> that's it. they did pass a bill dealing with the budget, many things, harry reid hasn't, but the message is not out there. we have a narrative, but we don't have the leadership.

>> i think -- i know boehner -- president had 72 # hours straight of golf. believe that's everything that you would create with the elite, the 1%, i mean, -- lou: great point. >> training from golf instructors and not from economists, even though we're in the tank. deficit, no job creation, stagnant economy, nothing going on with the economy. we're spending time working on the golf game. lou: "new york times" has it, 72 hours of golf, elitist president, and boehner is -- >> it's the mainstream media. we have to go backo the grassroots and advocacy of the party. lou: wt you just said, and i think you are exactly right, but you're saying the republican party has to go out and try to build up the membership and get its party going at the grassroots level. this is a party all they decided they needed was money and a few political connections and